The loss came despite a sharp jump in revenue from operations, which rose 79% year on year to Rs 31.54 crore, compared with Rs 17.61 crore in the same quarter last year. However, revenue declined sequentially. During the quarter, 12% of the company’s topline came from the defence segment, while the remaining revenue was driven by civil orders.
Losses at the EBITDA level nearly doubled to Rs 24 crore from Rs 13 crore a year earlier. On a sequential basis, the EBITDA loss almost tripled from Rs 7.99 crore in the September quarter.
The widening losses were primarily driven by a sharp increase in material costs, which rose to 76% of total sales, up from 49% in the previous quarter and 54% in the year-ago period. Elevated material costs led to a steep compression in gross margins, which fell over 2,200 basis points to 23.7%, compared with 46% last year and 50% in the September quarter.
As of the end of December, ideaForge’s order book stood at Rs 350.8 crore, up from Rs 164 crore at the end of September. The total order backlog is now at its highest level for the year at Rs 440 crore.
The company expects to execute 40% to 45% of its open order book in the fourth quarter of the current financial year and remains optimistic about improving gross margins and closing the year with profits.
Beyond defence, ideaForge made progress in its non-defence business during the quarter, working with government bodies and private enterprises to deliver UAV-led solutions across civil and industrial applications. The company signed a memorandum of understanding with C-DAC to integrate drones into India’s emergency response network. In addition, its joint venture with First Breach Inc., formed in the previous quarter, is expected to enhance market access in the US.Drones have emerged as a critical component of counter-insurgency and counter-terrorism operations, with recent global conflicts underscoring the importance of building strong indigenous capabilities. For India, this trend gained further momentum after Operation Sindoor, leading to faster procurement through initiatives such as EP6 and decentralised command-level purchases. Recent reports of a fresh procurement outlay of around Rs 20,000 crore point to a strong multi-year demand tailwind for the domestic drone industry, the company’s management said.
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